Solar Incentives in Lancaster

Pennsylvania law requires investor-owned utilities — including PECO, PPL, Duquesne Light, Met-Ed, and Penelec — to offer 1:1 retail-rate net metering for residential systems up to 50 kW. Every kWh you export offsets a kWh you consume at the full retail rate. Credits roll forward monthly and are reconciled each year on May 31, with utilities required to pay a cash surplus for net annual overproduction. Note: PPL has proposed shifting to hourly wholesale (LMP-based) credits in 2026, so PPL customers should install sooner to lock in current terms.

Pennsylvania's Alternative Energy Portfolio Standard (AEPS) includes a 0.5% solar carve-out, creating an in-state market for Solar Renewable Energy Credits. You earn one SREC for every 1,000 kWh (1 MWh) your system produces, which can be sold to utilities that must meet the solar requirement. In 2026, PA SRECs have traded roughly in the $22–$40 range. A typical residential system generates about 8–12 SRECs per year, providing ongoing income on top of energy savings. Pennsylvania closed its borders to out-of-state SRECs in 2017, which strengthened in-state prices.

Pennsylvania received federal Solar for All funding to expand residential solar access for low-income and disadvantaged households. The program provides grants and low-cost financing to reduce or eliminate upfront costs for qualifying homeowners, with the goal of delivering meaningful electricity bill savings. Program details and enrollment are administered at the state level and continue to roll out through 2026.